Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Japanese Trade Balance for September was reported at ¥675.0B. Economists predicted a figure of ¥989.8B. Forex traders can compare this to the Japanese Trade Balance for August, reported at ¥248.6B. The Japanese September Trade Balance for August was reported at ¥0.48T. Forex traders can compare this to the Japanese Adjusted Trade Balance for August, reported at ¥0.35T. Exports for September decreased by 4.9% annualized and Imports decreased by 17.2% annualized. Economists predicted a decrease of 2.4% and 21.4%. Forex traders can compare this to Exports for August, which decreased by 14.8% annualized, and to Imports, which decreased by 20.8% annualized.

The US NAHB Housing Market Index for October is predicted at 83. Forex traders can compare this to the US NAHB Housing Market Index for September, reported at 83. The US Monthly Budget Statement for September is predicted at -$124.0B. Forex traders can compare this to the US Monthly Budget Statement for August, reported at -$200.0B.

The forecast for the USD/JPY remains bearish as global Covid-19 cases increase. Japanese export data disappointed, adding to safe-have demand for the Japanese Yen. Chinese GDP data was weaker than expected, but industrial production surprised to the upside. Uncertainty over the US election next month add to selling pressure in the US Dollar, despite the upside surprise in consumer spending for September. The CCI moved out of extreme oversold territory. Price action remains below its downward sloping Ichimoku Kinko Hyo Cloud, trapped below its sideways trending Tenkan-sen and its descending Kijun-sen. Will bears for more downside, or can bulls push higher? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the USDJPY remain inside the or breakdown below the 105.100 to 105.550 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 105.450
• Take Profit Zone: 104.000 – 104.400
• Stop Loss Level: 105.800

Should price action for the USDJPY breakout above 105.550 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 105.800
• Take Profit Zone: 106.100 – 106.550
• Stop Loss Level: 105.550

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